Subpart 7.5
Inherently Governmental Functions
Contractors cannot perform inherently governmental functions, and agencies must ensure such functions remain with government personnel.
Overview
FAR Subpart 7.5 addresses the concept of inherently governmental functions—those activities that must be performed by government personnel and cannot be contracted out to the private sector. This subpart establishes the boundaries for what work can and cannot be outsourced, ensuring that contractors do not perform functions that are critical to the public interest or involve significant decision-making authority reserved for federal employees.
Key Rules
- Scope (7.500)
- Defines the subpart’s coverage of inherently governmental functions in federal acquisitions.
- Applicability (7.502)
- Specifies when and to which contracts these rules apply, including exceptions and limitations.
- Policy (7.503)
- Outlines the policy that prohibits contractors from performing inherently governmental functions and provides examples of such functions.
Responsibilities
- Contracting Officers: Must ensure that statements of work do not assign inherently governmental functions to contractors and must review acquisitions for compliance.
- Contractors: Must avoid accepting or performing work that constitutes inherently governmental functions and should clarify any ambiguities with the contracting officer.
- Agencies: Must provide oversight to prevent improper delegation of inherently governmental functions and maintain internal controls.
Practical Implications
- This subpart exists to protect the integrity of government operations and prevent conflicts of interest or loss of governmental control. It impacts daily contracting by requiring careful review of work statements and contract scopes. Common pitfalls include inadvertently assigning inherently governmental tasks to contractors or failing to recognize when a function is inherently governmental, which can lead to contract violations or legal challenges.